Gold and silver spiked up overseas and spent the rest of the day falling in the U.S. Yellen speaks again tomorrow so expect some more volatility either way based on what she says. Gold presently is at $1,207.30 in after-hours trading down 90 cents. Silver is down 2 cents to $16.43 in after-hours trading.
JDST was the star in the miners moving from pre-market at 8.70 to the low 9.30s. One could have got long early and rode it up today and not get stopped out. They could have went home flat or stayed long. Waiting for these setups for day trades pays off. Look for the higher high and move stops up in JDST every 25 cents it moves higher. Right now the stop should be at 9.13. So when it hits 9.38, move the stop up. From there, 9.63, 9.88 and 10.13. Over 10.13 and we might be off to the races.
I do see however there is more bullishness about gold so I don’t discount the potential of a move higher. The range bound gold is $1,190 on the low end (break of that go long JDST) and $1,243 on the high end (break of that go long JNUG and the like).
Being in this range as I have said before is difficult to trade, but sometimes you get a good trade like today. My bias is still lower overall and those looking to buy physical need to dollar cost average into a position on dips. Those waiting for the bottom call have to have more patience. It will come.
TNA kept moving up today, gaining 2.03% to close at 87.37. This market is about as bullish as it can get and is due for a pullback. The question on everyone’s mind is; “when?” It really doesn’t matter when if you are trading, just play what is in front of you. The reversal will come and it may turn into a swing trade, but keep in mind, the bull is full steam ahead and I wouldn’t marry a reversal unless we got some fear and a move higher in the VIX which is sitting at 13.04. I do find this strength in the market at odds with the data, like the U.S. ISM manufacturing PMI number today falling to a 13 month low in February. The February PMI number was also a decrease.
UVXY hit a lower low, which is all it knows how to do. SVXY meanwhile was up 3.31% to 66.46 and could have been played long from the open at a break of 64.63. You wouldn’t have got shaken out of the trade and could have rode it to close. TZA meanwhile hit a 52 week low of 10.50 today closing at 10.57. Any higher high is playable but for a scalp only right now.
UWTI you could have played at a break of 2.89 all the way up to 3.15 but would have been stopped out eventually at 3.04 if you didn’t take profit. DWTI never really became a play unless you had some experience in trading and caught the breakout at 109.51 and rode it to mid-114.
RUSS was a buy at 12.08 but you might have probably been stopped out on the dip to 11.97. It did bounce from that level so if you had a stop loss of .20 or greater, you would have rode RUSS all the way to close at 12.58. 11.78 was the low of the day and could have been used as a stop loss and if it was, you should be sitting on a nice profit right now in RUSS. A move over 12.60 tomorrow and we might finally get some momentum. Maybe Russia isn’t the great story the chart since the downgrade has painted. But don’t ignore price action if RUSL decides to actually be the momentum play and this was just a breather before what I spoke about yesterday comes to fruition.
UGAZ and DGAZ I had said yesterday were tough trades and today proved this to be the case. However, after hours, DGAZ moved from the close of 7.59 to 7.98, so look for the dip to go long DGAZ until Thursday’s report, if it dips. Tomorrow we may just be flat line with the move already having occurred. Keep a close eye on it. It has the potential to run back up to 9.07 the Feb. 6th high.
All in all, many good trades today. We’ll see what Yellen brings out of the markets tomorrow. Would she dare put a damper on things?
Gold and Silver Stock Mining Package
The mining package that we will be offering has been waiting for a release at a time that I feel would coincide with my overall view of gold and silver prices reaching the lower targets I think they can fall too. Many so called experts last year in July thought the miners would take off and next thing you know they broke to lower lows. Some called this latest run up the final fall for the miners. It obviously hasn’t been and I know that’s frustrating for many who are long or have been long for some time. There is a reason why I have been patient with the release of the mining package. There is also a reason why I chose the stocks I did and I’m excited about their potential. The mining package release date will be announced soon. I sent out an email to all who have subscribed on Friday with an update. If you haven’t signed up, read the following and express your interest.
We will be coming out with a mining package where we pick what we believe to be the best mining stocks to buy based on my research the last 8 months. We have been patient in releasing this because of the timing in purchasing these mining stocks can be tricky. We were one of the only one’s who recommended selling mining stocks in September of 2010 when the HUI was trading at 512.56. Much has transpired in the mining industry since that call with many companies disappearing or being taken over. Today many companies are struggling and if we do get a further pullback in the price of gold and silver, more companies will go bankrupt. Knowing which companies have the best opportunity moving forward will be key to you getting returns that we believe will be in the 100% to 500% range, and possibly much higher for some of the miners. This package will be released in the next few weeks and we will announce it on the site.
If you are interested in this Gold and Silver Stock Mining Package let us know by clicking this link below and completing the form.
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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